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The Economic Impact of the University of Calgary on the City of Calgary in 1989-90

THE ECONOMIC IMPACT OF THE UNIVERSITY OF CALGARY
ON THE CITY OF CALGARY
IN 1989-90
Introduction
The purpose of this study is to quantify the economic aspects of the contribution the University makes
on the City of Calgary.
While most Calgarians would acknowledge their University makes a significant educational, cultural,
and social contribution to the city, many would be unaware of the large annual economic stimulus
provided by the University. The economic vitality of Calgary is greatly enhanced by the employment the
institution provides and by the local purchases of goods and services made by the institution, its faculty
and staff, students, and visitors.
The contribution of The University of Calgary to the Calgary economy increases the size of that
economy, and this makes it more economical for more goods and services to be produced locally. In
the long-term the University's constant annual injection of spending results in the city being able to
support more industry and local manufacturing.
Approach
The study was based on data for the period 1989-04-01 to 1990-03-31, corresponding to The University
of Calgary's 1989-90 fiscal year. An approach termed the short-term, cash flow model was used. This
model, used by a large number of Canadian and American universities, involves examining the amount
of cash flow into the city's economy, during a one year period as a consequence of the University's
operations.1 It includes estimates of spending of full-time students and faculty and staff as well as
spending of persons who visited Calgary to attend University conferences and certain other University
functions. In addition, the level of employment supported by the University is examined.
An accepted technique of such studies is the application of economic multipliers to the total direct cash
flow and to the level of direct employment supported by the University, to arrive at the total economic
impact of the University on the local economy. The result is the total effect induced by round after
round spending of the initial cash flow, which generally works through the economy within a one year
period.
Direct Impact
Viewed as an employer, The University of Calgary employed 4.928 full-time equivalent persons from
both operating and trust (primarily research) funds during 1989-90. To place this number in
perspective, based on Statistics Canada employed labor force statistics for the period in question, the
University directly employed about 1.4% of the city's labor force. A 1985-86 study performed by the
Office of Institutional Analysis estimated that The University of Calgary is the fourth largest Calgary
employer (the top three employers being the City of Calgary, the Calgary Board of Education, and the
Government of Canada).
Direct university-related spending is termed the initial local business volume. For 1989-90 this initial
direct impact of the University is estimated to be $234.4 million which may be broken down as follows:
1A more extensive description of the methodology used for this study is contained in Office of Institutional
Analysis, "Economic Impact of The University of Calgary on the City of Calgary," Internal Report 275.

THE ECONOMIC IMPACT OF THE UNIVERSITY OF CALGARY
ON THE CITY OF CALGARY
IN 1989-90
Introduction
The purpose of this study is to quantify the economic aspects of the contribution the University makes
on the City of Calgary.
While most Calgarians would acknowledge their University makes a significant educational, cultural,
and social contribution to the city, many would be unaware of the large annual economic stimulus
provided by the University. The economic vitality of Calgary is greatly enhanced by the employment the
institution provides and by the local purchases of goods and services made by the institution, its faculty
and staff, students, and visitors.
The contribution of The University of Calgary to the Calgary economy increases the size of that
economy, and this makes it more economical for more goods and services to be produced locally. In
the long-term the University's constant annual injection of spending results in the city being able to
support more industry and local manufacturing.
Approach
The study was based on data for the period 1989-04-01 to 1990-03-31, corresponding to The University
of Calgary's 1989-90 fiscal year. An approach termed the short-term, cash flow model was used. This
model, used by a large number of Canadian and American universities, involves examining the amount
of cash flow into the city's economy, during a one year period as a consequence of the University's
operations.1 It includes estimates of spending of full-time students and faculty and staff as well as
spending of persons who visited Calgary to attend University conferences and certain other University
functions. In addition, the level of employment supported by the University is examined.
An accepted technique of such studies is the application of economic multipliers to the total direct cash
flow and to the level of direct employment supported by the University, to arrive at the total economic
impact of the University on the local economy. The result is the total effect induced by round after
round spending of the initial cash flow, which generally works through the economy within a one year
period.
Direct Impact
Viewed as an employer, The University of Calgary employed 4.928 full-time equivalent persons from
both operating and trust (primarily research) funds during 1989-90. To place this number in
perspective, based on Statistics Canada employed labor force statistics for the period in question, the
University directly employed about 1.4% of the city's labor force. A 1985-86 study performed by the
Office of Institutional Analysis estimated that The University of Calgary is the fourth largest Calgary
employer (the top three employers being the City of Calgary, the Calgary Board of Education, and the
Government of Canada).
Direct university-related spending is termed the initial local business volume. For 1989-90 this initial
direct impact of the University is estimated to be $234.4 million which may be broken down as follows:
1A more extensive description of the methodology used for this study is contained in Office of Institutional
Analysis, "Economic Impact of The University of Calgary on the City of Calgary," Internal Report 275.

THE ECONOMIC IMPACT OF THE UNIVERSITY OF CALGARY
ON THE CITY OF CALGARY
IN 1989-90
Introduction
The purpose of this study is to quantify the economic aspects of the contribution the University makes
on the City of Calgary.
While most Calgarians would acknowledge their University makes a significant educational, cultural,
and social contribution to the city, many would be unaware of the large annual economic stimulus
provided by the University. The economic vitality of Calgary is greatly enhanced by the employment the
institution provides and by the local purchases of goods and services made by the institution, its faculty
and staff, students, and visitors.
The contribution of The University of Calgary to the Calgary economy increases the size of that
economy, and this makes it more economical for more goods and services to be produced locally. In
the long-term the University's constant annual injection of spending results in the city being able to
support more industry and local manufacturing.
Approach
The study was based on data for the period 1989-04-01 to 1990-03-31, corresponding to The University
of Calgary's 1989-90 fiscal year. An approach termed the short-term, cash flow model was used. This
model, used by a large number of Canadian and American universities, involves examining the amount
of cash flow into the city's economy, during a one year period as a consequence of the University's
operations.1 It includes estimates of spending of full-time students and faculty and staff as well as
spending of persons who visited Calgary to attend University conferences and certain other University
functions. In addition, the level of employment supported by the University is examined.
An accepted technique of such studies is the application of economic multipliers to the total direct cash
flow and to the level of direct employment supported by the University, to arrive at the total economic
impact of the University on the local economy. The result is the total effect induced by round after
round spending of the initial cash flow, which generally works through the economy within a one year
period.
Direct Impact
Viewed as an employer, The University of Calgary employed 4.928 full-time equivalent persons from
both operating and trust (primarily research) funds during 1989-90. To place this number in
perspective, based on Statistics Canada employed labor force statistics for the period in question, the
University directly employed about 1.4% of the city's labor force. A 1985-86 study performed by the
Office of Institutional Analysis estimated that The University of Calgary is the fourth largest Calgary
employer (the top three employers being the City of Calgary, the Calgary Board of Education, and the
Government of Canada).
Direct university-related spending is termed the initial local business volume. For 1989-90 this initial
direct impact of the University is estimated to be $234.4 million which may be broken down as follows:
1A more extensive description of the methodology used for this study is contained in Office of Institutional
Analysis, "Economic Impact of The University of Calgary on the City of Calgary," Internal Report 275.